About The Company
Dynemic Products Ltd is a Gujarat based company manufacturing and exporting Food Colors, Lake Colors, Blended Colors, FD & C Colors, Salt Free Dyes, Dyes Intermediates, D&C Colors & Natural Food Colors.
All the products manufactured by Dynemic meet the regulatory requirement of BIS, EU, FDA, & WHO specification, It also fulfills criteria of Kosher & Halal certification.
The company is actively exporting its products world-wide including USA, UK, Germany, South America, Middle East, South East, South Africa, Indonesia, Thailand, Philippines, China, Brazil, Argentina, Chile etc.
All the products manufactured by Dynemic meet the regulatory requirement of BIS, EU, FDA, & WHO specification, It also fulfills criteria of Kosher & Halal certification.
The company is actively exporting its products world-wide including USA, UK, Germany, South America, Middle East, South East, South Africa, Indonesia, Thailand, Philippines, China, Brazil, Argentina, Chile etc.
Product Uses
Dynemic's colors/dyes are used mainly for: Confectioneries, Beverages, Processed Foods, Bakery Products, Dairy Products, Pet Food, Medicines, Cosmetics & Personal Care products.
The Ace Investor - Value Pick
(BSE CODE: 532707) Dynemic Products Ltd.
The stock is currently trading around Rs 75 with a market cap of 81. 41 crores.
Current P/E is at 7.90 and Promoter Holding is at 42.49%.
After our last export driven pick (SKM EGG) recommended at 47.90 ::LINK TO SKM POST:: we have found this another export driven company, Whose exports form above 70% of the total sales.
The company has seen a sharp growth, i.e. the total sales for FY13 were at 85.76 crores and Profit was at 4.33 crores while in FY14 total sales rose to 116.36 crores and Profit boomed to 10.23 crores, Many a times it has been noted that such performance is a one-off and are not sustainable but for Dynemic the June 2014 quarter has shown sales of 30.45 crore v/s 32.71 crores for quarter ended March 2014 and very soon the September 2014 quarters numbers are going to be announced and if sales are anywhere above 30 crores it would indicate that performance is sustainable, We recently had a word with the management and they clearly said that the performance is sustainable thanks to booming export and increasing demand and with September results it will be very clear that it is sustainable.
Future outlook for the company looks very positive atleast for the next 3 years, A turnaround in global economy and improving consumer spending, The demand for colors have already increased sharply and are expected to increase further.
The company is setting up a plant at Dahej which will push the sales up sharply in the future to come.
As above inputs make it clear that Dynemic Products Ltd. is not an expensive stock and is a value pick considering the improving economic sentiment, transparent corp. governance record and great future outlook.
At cmp of Rs 75, Value investors should latch on to this stock for Mid to Long-Term for a target of Rs 200. Stock can touch 200 anytime in next 2 years, It can even meet this target in 6 months if earnings continue to be solid throughout the period.
Dear ACE Investor (AI ) ... bought 700 @ 78 , hope for that this time also Ur stk flies lika a diwali rocket ;) :D
ReplyDeletewill buy another 300 in between range of <70-72 if it comes ....
thanks for ur new stocks
massive accumulation seen in this stk from Aug14 .. something is definately cooking thr n tomarrow result will shows us all the inside happening
DeleteThis also rocks like SKM.Thank you sir
ReplyDeleteIt should.. Food stocks have soared and now food products r the proxy play... Food, Water & Fresh Air make great investment options if they were listed... There will be shortage of all three in longer term or u can say future generations.
DeleteSir great pick
ReplyDeleteNice rsults announced now
Any call on binani industry?
And thanks in advance for prompt replies, though i know who r u behind this blog, you are undisputed market king... But soon your blog will give you further anonymous recognition! ;)
Binani is undervalued, will research on it and put it on the blog if i dont find any turn off.
DeleteHi,
ReplyDeletei just saw your post first time. its awsome!! can we still buy this stock at CMP @92.5. Please suggest.
Thanks in advance.
Ofcourse, at present Business scenario too it is undervalued and if we consider the bright prospect of the business it is hugely undervalued.
DeleteSo value investors should definitely go for Dynemic.
Dear Ace,
ReplyDeleteYour analysis is awesome
Dynemic seems better than Vidhi - better NPM and less debt
Concern is free cash flow - low in relation to business prospects - warrants caution
Alert: Dynemic Products is falling because in the shareholding patterns it appears that promoter stake has reduced from 42.49% in Sep quarter to 37.84% in Dec quarter.
ReplyDeleteHowever in reality,ex-Promoter Dahyabhau Nathabhai Patel who now holds 4.33% as public investor was a promoter in the name of D N Patel (HUF) in last shareholding pattern with a stake of 4.41%.
So actually Dahyabhau Nathabhai Patel has been re-classified as public shareholder maybe due to family issues while he was in promoter category earlier, If we add-up his holding the promoter holding remains above 42%
Sir, can we add the stock on Tuesday morning with a view of achieving targets of 200. Pls advice
ReplyDeleteDear Ace,
ReplyDeleteWould you still recommend investment in dynemic at current price levels?
Best Regards,
Ajit
Personally, I will buy at CMP.
Deletesir i am trapped in dynemic products 2000 shares at 60 ; should i continue to hold or sell and get out ;
ReplyDeletePromoter holding increased this quarter, hope financials are good this quarter and the stock rebounds.
Delete